Northern Gold Mining Inc. Initial Kirana Results and Polymetallic Grabs

Market Wire, October, 2008

Northern Gold Mining Inc. (TSX VENTURE: NGM) continues the exploration of its Kirana Project in Kirkland Lake and its Matheson Claim Group in Timmins, and announces the results of assays on the earliest Fidelity area drill holes as well as grab samples from the Mallard Lake area of the Kirana Project.

KIRANA PROJECT

In July Northern Gold discovered high-grade gold grab samples in the Fidelity area on its Kirana property. This discovery initiated an aggressive exploration campaign of surface stripping and diamond drilling to ascertain the characteristics and extent of the gold mineralization. Thirty-eight drill holes were drilled into the zone over an area 350 metres along strike by 300 metres vertical. Hole lengths varied from 50 to 650 metres. Varying hole azimuths were utilized to test for all possible mineralized zone orientations and structural controls. To date, assays have been returned from 16 shallower holes drilled early in the program and testing to a depth of 35 metres. All of the holes intersected the carbonate-sericite alteration associated with the high grade gold mineralization on surface. However, none of the assayed holes showed economic gold mineralization. The values were more typical of the elevated background levels observed in the earlier surface sampling between the local higher grade concentrations. Based on surface observations it is believed that the high-grade gold mineralization is associated with a quartz-feldspar porphyry - mafic volcanic contact. In 6 of the 16 drill holes with assays returned this contact was not visible and the hole collared immediately in the alteration associated with the gold mineralization. This indicates that a potentially significant portion of the mineralized zone has been removed due to surface erosion. Northern Gold is currently awaiting the results from deeper holes testing the zone at depths between 35 and 300 metres.

Hole         From - To (m)  Length (m)  Assay (g/t)  Depth (m)  Easting (m)
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B08-5    collared in zone                      NSA        -14         161E
B08-6                  NA          NA          NSA        -17         146E
B08-7    collared in zone                      NSA        -14         130E
B08-8           34.2-34.8         0.6         1.71         -3         144E
B08-9    collared in zone                      NSA         -4         126E
B08-10          20.8-21.5         0.7         0.21         -8         135E
B08-11            8.3-9.0         0.7         1.10         -2         124E
B08-12          32.5-32.8         0.3         0.48        -23         135E
B08-13                 NA          NA          NSA         -9          90E
B08-14   collared in zone                      NSA        -10         100E
B08-15          30.6-31.2         0.6         0.34        -24          96E
B08-16          40.9-41.9         1.0         0.89        -20          88E
B08-17          31.9-33.2         1.3         1.48        -25         115E
B08-18          30.8-31.5         0.7         0.55        -35         102E
B08-20                 NA          NA          NSA        -28          39E
B08-24          37.1-37.7         0.6         2.88        -30          52E
(NA - not applicable; NSA - no significant assay; for holes showing NSA the
 Depth and Easting position is the target)

Northern Gold has expanded its drilling program on the Kirana Property to test regional targets along the 7.5 kilometre strike extent of the Kirana Break. An 88 kilometre Induced Polarization (IP) survey which is nearly complete has outlined numerous conductive anomalies along the Kirana Break. This same IP survey has also outlined a strong conductive anomaly at least 700 metres in length in an unexplored area approximately 600 metres south of the Kirana Break. With two diamond drills currently on the property, Northern Gold is systematically testing these anomalies. Nineteen holes have now been completed on this regional drilling program and detailed geologic logging and assaying are scheduled for later this month (following completion of priority work on the Fidelity core). To date a total of approximately 8900 metres has been drilled in the Fidelity and other areas of the Kirana Project.

Northern Gold has stripped and washed two new areas 6.0 and 6.5 kilometres east of the Fidelity area where indications of both gold-silver and base metal mineralization have been observed. In the Mallard Lake area approximately 6.0 kilometres east of Fidelity both VTEM and IP surveys show a strong conductive response, with the IP response being traced across at least 400 metres. Following up on these survey results, Northern Gold has stripped and washed an area approximately 100 metres by 100 metres in the vicinity of an old 60 foot deep shaft and exposed quartz veins up to 3 metres in width with clots of coarse galena and chalcopyrite. Following this initial stripping effort the area will be geologically mapped and channel sampled prior to diamond drilling. Initial grab samples from this area have returned assays up to 11.16 g/t gold (Au), 557 g/t silver (Ag), 25.53% lead (Pb), 5.25% zinc (Zn), and 1.01% copper (Cu).